PROMOTION
Any form of communication a
business or company uses to
inform, persuade, or remind
people about products and to
improve its image
Lesson Objectives
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Define promotion
Identify purposes of promotion
Define institutional promotion
Identify 6 types of promotion
Define promotional mix
Purposes of Promotion
• REMIND; INFORM; PURSUADE
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Convince potential customers to buy
Explain features/benefits of products
Tell where products are sold
Advertise sales on products
Answer customers’ questions
Introduce new products
Create a favorable image of the company or product
Two Basic Kinds of
Promotion
• Product P
• Institutional Promotion
Institutional Promotion
Used to create a
favorable image of the
company, rather than
to directly sell products
Institutional Promotion
Discussion
• Why would an organization
promote itself and not its
products?
Types of Promotion
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Advertising
Sales Promotion
Personal Selling
Publicity/ Public
Relations
• Visual
Merchandising
• Direct Marketing
ADVERTISING
The non-personal
presentation of
ideas and
products by an
**PAID
identified sponsor.
FOR**
SALES PROMOTION
2 for 1 Sale
Buy One,
Get One
Free
$2 off
after 8PM
on Tuesday
• stimulate purchases
• increase store traffic
PERSONAL SELLING
The PERSONAL presentation of a
product or company to one or
more potential buyers
PUBLICITY
PUBLIC RELATIONS
Creating demand
for a business or
product by placing
news about it in
the media
Visual Merchandising
The coordination of all physical
elements in a place of business
so that it projects the right
image to its customers
Direct Marketing
• Directed towards a targeted
group of prospects.
• Types of Direct Marketing
– Printed Direct Mail
– Electronic Direct Mail
Can you name a type of business
that…
• Uses a lot of advertising and sales
promotion, but very little personal
selling?
• Uses very little advertising, but lots
of personal selling?
What types of promotion do
you think the following
businesses use?
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Hayes Chrysler/Jeep
Ruby Tuesday
Avon Corporation
ebay
The combination of
promotion types represents
a product’s
PROMOTIONAL MIX